Sell your Trademark in Bangalore
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Complete Process
Overview
A registered owner can sell a trademark to any legal entity or individual through the process of trademark assignment. By doing so, the owner can allocate the right of his/her trademark to a person or entity. The process of trademark assignment is governed according to the provisions of the Trade Mark Act, 1999. Now, let’s see whether a trademark can be sold in India.
In the trademark assignment procedure, the entity or a person who is selling the trademark labels is the assignor and the other party (who is obtaining it) is the assignee.
For the trademark assignment, either assignee or the assignor requires to apply. The transfer procedure generally takes three-to-four months for completion, subject to successful verification of all documents and legitimacy of such trademark assignment. The trademark assignment of every registered trademark should be recorded with the registrar of trademarks.
Advantages
1. Share Instead of Shoulder:
Running a business means a lot rests on your shoulders. If you are a small business owner, you are likely shouldering the brunt alone. With a trademark licensing agreement, you may gain a professional partner who can take some of that pressure off.
2. Access Experience:
Owning a trademark does not necessarily mean you have the skills, capital, or commitment to commercially exploit it yourself. You may have expertise in a few areas, but chances are you are not an expert in all things.
3. Reach New Markets:
Consumers often base their purchasing decisions upon either
1. brand reputation or
2. personal experience with a brand
Newer licensors have an opportunity to forge partnerships that can leverage an existing reputation Your business should expand through your licensee’s existing marketing and distribution channels, increasing awareness for you, and automatically boosting trust in your mark due to the association with the better-known brand. This can benefit both parties in the long term.
4. Collect (Relatively) Passive Revenue:
Each of the previous advantages is ultimately an effort to increase financial returns for the trademark owner. Regardless of where you are in the branding process, a licensing agreement may allow you a relatively passive income without losing any ownership rights.
On one end, manufacturers are often willing to pay significant royalty rates for the right to identify their goods with an established and widely recognized trademark. On the other, increasing awareness of your brand by associating with another well-known brand brings additional revenue to you as well.
5. Effective Mitigation Tool:
Seeing your trademark infringed upon can be a shock. Often, the first reaction is “lawsuit,” but for small companies without extensive legal resources, legal trademark enforcement can be a huge challenge.
Sometimes a better solution is to mitigate the damage – and quite possibly improve business greatly, too – by proposing a trademark licensing agreement to the infringer rather than threatening to sue. This approach is a great way to build relationships, support goodwill, and foster consumer confidence.
Process
Trademark owners may need to transfer ownership or change the name on their application or registration. This could happen while your trademark application is being examined or after your trademark has registered. A federal trademark can potentially last forever, but it has to be renewed every ten years. If the mark is still being used between the 5th and the 6th year after it was registered, then the registration can be renewed.
1. Assignor/Owner of Trademark must have the intention and consent for Trademark Assignment.
2. Assignment of trademark must be in writing.
3. There must be two identifying parties – Assignor and Assignee.
4. Valid Identified documents of both Assignor and Assignee.
5. Execution of valid Trademark Assignment Agreement.
Documents Required
1. Power of Authority (from Assignor & Assignee):
Two parties are involved in this process. The assignor is the party who assigns the rights (in part or whole) to another party. The assignee is the one who receives the trademark rights in the process of trademark assignment.
If the trademark assignment is done with the help of a legal professional then each party is required to execute a power of authority. In the present context, the power of authority is a document that grants a right to legal professionals to carry out representations and pursue legal procedures related to trademark assignment for any individual or business.
2. Trademark Assignment Agreement:
In the process of trademark sale, parties are required to execute a written agreement to make such trademark assignment enforceable. The trademark assignment agreement is a document which is also an acknowledgement of the transfer of rights and responsibilities from one person to another.
This is the only document that clearly shows –
1.The change of ownership of a trademark.
2. The interest of the parties involved.
3. The rights and obligations associated with the trademark assignment, consideration to the assignor for such transfer etc.
The assignment agreement is enforceable in India if the parties duly execute it with appropriate stamp duties, notary and signature of the parties. The parties can keep a copy of the trademark assignment agreement. The originals are to be submitted to the appropriate trademark registry to give effect to the change of title of the trademark.
A trademark Assignment agreement comprises various entitlements, rights and responsibilities of various parties. It also anticipates the expectations and risks of the parties involved. It is advisable to consider a professional’s view before performing a trademark assignment in India.
3. No Objection Certificate (executed by the Assignor):
A no-objection certificate encapsulates the assignor’s wish to transfer the trademark ownership. In this document, the trademark assignor also agrees that they have no objection to such a transfer of right.
4. Goodwill Certificate (given by the Assignor):
This document is required when the trademark is being transferred wholly along with the trademark owner’s goodwill.
Basically, a goodwill certificate provides that the assignor has a right to all entitlements related to the qualitative value in a trademark and the assignor is transferring his/ her rights in a trademark to another person. Generally, this document allows the assignee to acquire all entitlements and values associated with the trademark and a right to unconditionally use the
trademark for any of the goods and services.
5. Acceptance of trademark rights (provided by the Assignee):
This is another important document which should be submitted to the trademark registry during the process of trademark assignment. The trademark rights can be transferred by the assignor and the assignee needs to accept the same as well.
Therefore, this document consists of the written acceptance of the assignee for the right transfer. Sometimes, this document is also merged with the trademark assignment agreement. It highlights the acceptance of trademark rights by the assignee.
Faqs
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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.